Senate Democrats Elizabeth Warren and Richard Blumenthal have urged the Securities and Exchange Commission to investigate President Donald Trump's memecoin, arguing it may have facilitated illegal fraud or unjust enrichment, according to a letter first shared with CNN.
The lawmakers said the SEC should determine whether the cryptocurrency amounted to an illegal scam or a "soft rug pull," where insiders gradually profit while retail investors absorb heavy losses.
The White House referred questions to the Trump Organization, while the SEC declined to comment. Trump has previously defended his cryptocurrency earnings, saying they complied with the law and that his son Eric oversees his personal financial interests while he serves as president.
Related Tweet:
🇺🇸 Senator Warren criticized the CLARITY Act, calling the legislation “insulting to the American people.”
— CHDaily (@cryptohdaily) August 4, 2026
“Donald Trump has made clear what his scam is. Other scams are right out here where we can see them”
No love for crypto from Senator Warren.👀👇 pic.twitter.com/VMJhqyqLfQ
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